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So some smartass at Microsoft decided he'd tell the world that the Xbox 360 will be "unhackable". This in turn just begs for your product to be hacked to shreds. Listen to what Chris Satchell from the Xbox
Advanced Technology Group told the BBC:

One of the reasons we went with custom hardware design for all our silicon is that it allows us to build security at the silicon level," he said. "There are going to be levels of security in this box that the hacker community has never seen before," but he admitted that "I'm sure sooner or later someone will work out how to circumvent security. But the way we have done the design doesn't mean that it will work on somebody else's machine."

They'd best be careful. One of the reasons why the original Xbox was so popular was its ability to be used as a cheap linux box. Maybe Microsoft should do some thinking as to how hard they want their Xbox protected.